NEW DELHI: Mindspace Business Parks REIT (Mindspace REIT) has secured three key central business district properties for ₹29.2 billion from K Raheja Corp.
The board of K Raheja Corp Investment Managers, responsible for managing Mindspace REIT, approved the acquisition and a preferential issue of units totaling up to ₹18.2 billion.
The company also announced the purchase of Pramaan Properties, which includes 0.45 million sq ft at Ascent – Worli in Mumbai, alongside an office building of 0.1 million sq ft located in Kalyani Nagar, Pune.
Additionally, Sundew Real Estate, which owns 0.2 million sq ft at The Square Avenue 98 in BKC Annex, was acquired.
Ramesh Nair, MD and CEO, stated, “These premium, institutional-grade assets offer strong cash flows and feature prominent Wall Street firms as anchor tenants. They bolster the scale, stability, and growth potential of our portfolio.”
These acquisitions add up to 0.8 million sq ft of leasable area, with a gross asset value (GAV) of ₹31.1 billion as appraised by independent valuers. The total acquisition price stands at ₹29.2 billion.
With these acquisitions, the company’s total portfolio will expand to 39 million sq ft.
The strategic move is projected to yield a 9% growth in net operating income (NOI) and a 1.7% increase in distribution per unit (DPU), enhancing gross asset value (GAV) from ₹410.2 billion to ₹441.3 billion.
The newly acquired assets boast committed occupancy levels between 86% and 100%, with Ascent–Worli nearing 86% completion expected in 2025, while both the BKC Annex and Pune properties are fully leased. The BKC Annex offers further potential with an approved expansion of 62,000 sq ft, along with planned capital expenditure of ₹490 million.
Mindspace REIT noted that these properties have a weighted average lease expiry (WALE) of around seven years. Post-transaction, the REIT’s loan-to-value (LTV) ratio will modestly increase from 24.2% to 24.7%.
The acquired properties are leased to prestigious global tenants. The Square Avenue 98 in BKC Annex is fully occupied by JP Morgan, while Ascent–Worli includes tenants like Goldman Sachs, Dream11, and The Executive Centre. The Pune asset is entirely leased by WeWork.
Current rents for the acquired portfolio average ₹243 per sq ft monthly, with Worli at ₹302 per sq ft and BKC Annex at ₹197 per sq ft. The Square Avenue 98 shows a mark-to-market potential of about 40%, supported by an income guarantee of ₹99 crore annually (totaling ₹181 crore until October 2027).
The net debt for Pramaan Properties stands at ₹7.54 billion and ₹2.17 billion for Sundew Real Estate. After accounting for debt, deposits, and liabilities, the equity purchase consideration amounts to ₹18.2 billion.
